Cadence Column: Asia, September 18, 2017

China’s situation is growing more and more similar to North Korea’s. They seek to “match” the US in military strength, but aim to do so without US economics. Without the economics it will be hard to match anything. Slowly, but surely, the US is chipping away at money going into China.

Stocks were up in China, especially recently. Shenzhen is fairing quite well. But, Trump managed to block a Chinese company from buying a US chip maker, Lattice. This is just the beginning, not only for blocked deals both in the US and elsewhere, but also in bad international press against China.

Taiwan isn’t helping. 500 Taiwanese in New York protested the island not being a UN member, claiming that Palestine is not a state, but has a membership. If Taiwan were to join the UN, it would be in the top 25% largest populations. But, pushing these matters will likely have no impact, other than bad press against China.

This week, North Korea launched again, scaring Japanese even more, making it even harder to defend the Kim Dynasty. China doesn’t want to lose a “buffer” that would put a stronger US ally on its border, nor deal with an influx of refugees. But, China may have more than the situation with the US and North Korea to worry about. The dormant volcano on North Korea’s side of the China border has been rumbling.